Monday, October 23 2017

VietNamNews

Low liquidity worries investors

Update: February, 06/2015 - 09:10

Investors observe stock movements at Vietcombank Securities. Shares extended rallies yesterday on the HCM Stock Exchange but liquidity continued to drain. — VNS Photo Truong Vi

HA NOI (VNS) — Markets extended rallies yesterday on the HCM Stock Exchange but liquidity continued to drain, fueling concerns that investments flowing into the securities market were reduced after Circular 36 took effect early this month.

The new law set limits on loans for stock investments and conditions under which banks can give loans.

The benchmark VN-Index added 1.02 per cent to close yesterday's session at 567.17 points.

Bank stocks returned to being the market's main source of momentum, as most of this share group gained value, including Vietcombank (VCB), up 5.44 per cent; Vietinbank (CTG), up 5.56 per cent; Bank for Investment and Development of Vietnam (BID), up 4.46 per cent; and Eximbank (EIB), up 2.34 per cent.

Blue chips were mixed and the VN30, which tracks the 30 shares with the highest market value and liquidity, increased just 0.42 per cent to end at 591.28 points.

Liquidity declined, however, with the market volume dropping 20 per cent from the previous session, totaling nearly 79 million shares, while the trading value fell 10 per cent to VND1.26 trillion (US$59 million).

FLC Group (FLC) continued to lead the market here in terms of volume with 6.7 million shares, closing flat at VND10,600 ($0.50) a share.

By contrast, the HNX-Index on the Ha Noi Stock Exchange inched down 0.03 per cent to finish yesterday at 83.17 points as investors' sentiment was low as the liquidity sank to the seven-month low.

The market volume reduced another 15 per cent from a day ago to reach over 30 million shares, while the value of trades decreased 10 per cent to VND392 billion ($18.3 million).

The market condition was negative with 93 stocks declining, 78 advancing and 191 standing still.

F.I.T Investment Co (FIT) became the most heavily-traded stock yesterday in the Ha Noi market with 5.6 million shares traded, climbing 5.65 per cent to settle at VND18,700 ($0.87) each.

The company on Wednesday signed a strategic co-operation agreement with Cuu Long Pharmaceutical Co. (DCL) and revealed its plan to buy a 65-per-cent stake in the pharmaceutical company.

Foreign investors concluded yesterday as net buyers in the HCM City market with a pick up of VND44.3 billion ($2 million) in shares, but they turned heads to be net sellers in Ha Noi and unloaded shares worth VND1.4 billion ($65,400). — VNS



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